AVCON(SZ:300074)2022-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥150,844,028.47, a decrease of 22.12% compared to ¥193,699,220.12 in the same period last year[21]. - The net loss attributable to shareholders for the first half of 2022 was ¥23,054,434.30, representing a significant increase in loss of 750.75% compared to a loss of ¥2,709,895.05 in the previous year[21]. - The basic and diluted earnings per share for the first half of 2022 were both -¥0.0434, reflecting a decline of 750.98% from -¥0.0051 in the previous year[21]. - The company reported a net profit excluding non-recurring gains and losses of -¥28,208,331.28, a decrease of 615.89% from -¥3,940,306.64 in the same period last year[21]. - The company reported a total profit of CNY -26,854,854.47, compared to CNY -4,352,510.71 in the previous year, reflecting a worsening financial position[1]. - The total comprehensive income for the period was CNY -22,978,004.30, compared to CNY -2,291,389.00 in the previous year[139]. Cash Flow and Assets - The net cash flow from operating activities improved to ¥24,765,848.76, a turnaround of 182.28% from a negative cash flow of ¥30,099,909.20 in the same period last year[21]. - Cash and cash equivalents decreased to approximately ¥111.60 million, representing 6.70% of total assets, down from 10.54% in the previous year[49]. - The company reported a significant increase in accounts receivable, totaling approximately ¥503.30 million, which represents 30.23% of total assets[49]. - The net cash flow from investing activities was negative at -¥63,211,599.80 for the first half of 2022, worsening from -¥27,750,403.59 in the same period of 2021[146]. - The ending cash and cash equivalents balance for the first half of 2022 was ¥110,956,156.25, compared to ¥54,364,456.58 at the end of the first half of 2021, indicating a year-over-year increase of approximately 103.5%[146]. Revenue Segmentation - Total revenue for the smart city segment decreased by 50.85% year-over-year to approximately ¥42.07 million, with a gross margin of 28.30%[42]. - Emergency command segment revenue fell by 42.29% year-over-year to about ¥38.81 million, maintaining a gross margin of 53.33%[42]. - Video communication revenue plummeted by 66.90% year-over-year to around ¥11.30 million, with a gross margin of 50.51%[42]. - Revenue from medical insurance information products and services surged by 100% year-over-year to approximately ¥46.10 million, achieving a gross margin of 64.92%[42]. - Other business revenue increased by 86.62% year-over-year to about ¥12.57 million, but reported a negative gross margin of -33.81%[42]. Research and Development - The company's R&D investment increased by 100.30% to ¥29,423,711.92 from ¥14,689,963.75, mainly due to the new subsidiary Xin Yi Hua's R&D expenses[40]. - Research and development expenses increased to CNY 31,606,300.78, up 86.5% from CNY 16,954,767.25 in the prior year[1]. - The company has established three major R&D centers in Shanghai, Nanchang, and Shenzhen, focusing on enhancing core technology and comprehensive solution capabilities[34]. Market Strategy and Expansion - The company is focusing on expanding its "Video +" technology applications in various industries, including emergency command and smart cities[32]. - The company plans to expand its product offerings and enhance market presence, particularly in the medical insurance sector, which has shown significant growth potential[43]. - The company aims to strengthen customer relationships and expand its market presence through targeted marketing strategies and strategic partnerships[36]. - The company is actively exploring new business areas, particularly in "video+" technology applications, but faces challenges in talent acquisition and market expansion[67]. Corporate Governance and Social Responsibility - The company actively fulfills its corporate social responsibility, enhancing governance and ensuring timely and accurate information disclosure[83]. - The company has been recognized for its contributions to poverty alleviation and social welfare, receiving awards for outstanding contributions in 2021[84]. - The company has established an environmental management system certified by GB/T24001-2016 idt ISO14001:2015, ensuring compliance with environmental protection laws[82]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[4]. - The largest shareholder, Zhihui Technology Investment, holds 15.56% of shares, totaling 83,061,778 shares, with no change during the reporting period[118]. - The company has a total of 35,413 shareholders at the end of the reporting period[116]. Risks and Challenges - The company faces risks related to intensified industry competition and potential declines in gross margin levels[67]. - The company plans to enhance its project team and strengthen risk awareness to mitigate operational risks[67]. - The company emphasizes the importance of risk awareness regarding forward-looking statements made in the report[3].